Allen Stanford – Blood Rituals, Gambling Losses, Prison Fights and Ponzi Schemes
Disgraced financier Robert Allen Stanford, made his money in Houston real estate and then with the Stanford international Bank in the island of Antigua. It has been alleged that the multi-billion dollar business was a Ponzi scheme. Specifically, the SEC said that Stanford and his accomplices operated a “massive Ponzi scheme”, misappropriated billions of investors’ money and falsified the Stanford International Bank’s records to hide their fraud. “Stanford International Bank’s financial statements, including its investment income, are fictional,” the SEC said. Here is the original SEC complaint. A US judge has set a date of January 2011 for Stanford’s fraud trial.Stanford, Federal Bureau of Prisons #35017-183, is incarcerated at the Federal Detention Center, Houston. In April 2010 Stanford also lost the title of “Sir Allen” previously bestowed to him in Antigua.
Photos recently surfaced of Stanford beaten in prison over a dispute related to using the telephone.
Since the allegations against Stanford broke a number of interesting facts have come out regarding his business and operations including many operational risk red flags.
Here is part one of the BBC Panorama special on Stanford:
Part two:
Part three:
And here’s a video about Stanford being sued for gambling losses. This video also talks about allegations by James M. Davis, Mr. Stanford’s former CFO who has since agreed to a plea deal with the government, that Stanford participated in a bizarre blood brothers ritual with Leroy King, Antigua’s chief banking supervisor – where Stanford’s offshore bank was located:
And here is a video of Stanford victims and former employee:
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